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Course Description

The inventory strategy you employ depends primarily upon the lifecycle of the product. For products with a short lifecycle that don't have much value after certain amount of time, such as medications with an expiration date, the "newsvendor" model provides a useful approach. In this lesson, you will review the concept of a "normal distribution," which is a foundational concept for understanding demand. Then, you will be introduced to the newsvendor model, a mathematical model for determining the optimal stocking quantity of a product, and the critical fractile, which enables you to determine the stocking quantity that maximizes the expected profit. You will gain the Newsvendor Calculator, an Excel tool for determining Q*, and you will see how to use the calculator to determine the optimal stocking quantity of a short-lifecycle product.

Benefits to the Learner

  • Discover how the Newsvendor Model is used to match levels of inventory with demand in a way that maximizes profit for products with short lifecycles
  • Use the Newsvendor Calculator to determine optimal stocking quantity
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Type
self-paced (non-instructor led)
Dates
Nov 23, 2020 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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